sz85

Going for a mortgage - Need to remove a collection (they can't sue, SOL expired) off my credit report

4 posts in this topic

Hello and thank you for reading/trying to help,

I'm in the process of looking for a home to buy and have been pre-approved for a mortgage. I was told that no matter what I have to take care of the open/active collection I have reported on my credit reports by Portfolio. The SOL is up and they cannot sue me for it, but the account is to stay on my credit reports for 2 more years. I tried disputing it with the credit agencies but had no luck. Portfolio actually sued me for a different account a year ago, which I challenged and won; I'm guessing that's why they let the SOL expire on this one and never bothered to contact me about it, and instead reported it to the credit agencies right after the SOL was up. How should I go about contacting them to get this off my credit report? The amount owed is $1,300 and obviously I'd like to pay as little as possible and have the account completely deleted off my credit report or reported as paid in full - or whatever is best to improve my credit score. I would think that I have leverage in this situation seeing as they can't sue me for it so offering them anything at all would be better than nothing. If I contact them, would that change/reset the SOL and allow them to come after me for it? What's the minimum you think they would be happy with? How long would this process take? I know I should get the deal in writing, but is it wise to talk to them on the phone while we try to reach a deal?

Any help would be greatly appreciated.
Thank you.

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13 minutes ago, sz85 said:

The amount owed is $1,300 and obviously I'd like to pay as little as possible and have the account completely deleted off my credit report or reported as paid in full - or whatever is best to improve my credit score

PRA will NOT do PFD no matter what.  Hard line policy against it.  Unfortunately by pre-approving for a mortgage you gave up your leverage.  PRA KNOWS you cannot get it under written with that open collection and therefore you have to settle with them.  You can certainly offer something lower but I would be prepared that they are going to play hard ball and refuse anything but the entire amount knowing you have to have it settled to get the mortgage.

15 minutes ago, sz85 said:

How long would this process take?

No way to know.

15 minutes ago, sz85 said:

I know I should get the deal in writing, but is it wise to talk to them on the phone while we try to reach a deal?

Send them a settlement offer in writing.  If they sign and send it back then pay them.  DO NOT talk to them on the phone.

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Open collections don't prevent you from getting an FHA Mortgage.  Even a conventional lender should be able to work around an uncollectible $1300 account, unless you are getting a mortgage that you are essentially not qualified for under any circumstances.

I had a 10K account with Midland that was still within SOL and got an FHA Mortgage.

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On 6/27/2017 at 1:48 PM, Goody_Ouchless said:

Open collections don't prevent you from getting an FHA Mortgage.  Even a conventional lender should be able to work around an uncollectible $1300 account, unless you are getting a mortgage that you are essentially not qualified for under any circumstances.

I had a 10K account with Midland that was still within SOL and got an FHA Mortgage.

Agreed.  I would check with a couple other mortgage lenders.  I got a mortgage that I wasn't qualified for anyway and had a Capital One debt that was 4 years old (SOL here is 6 years) showing on my credit report.

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